As schools across England and Wales prepare to break up for summer, new research by Nationwide and Action for Children warns thousands of families face a looming crisis of unaffordable childcare, rising costs and impossible choices.
The research - which polled 2,000 parents with school-age children on Universal Credit across the UK - found over three quarters (78%) of low-income families agreed[1] that school provides “an important safety net”, albeit one that will end this week for the summer break.
It means an end to vital school-based support, with over two-thirds of low-income families currently reliant[2] on subsidised school meals (75%), subsidised trips and activities (69%), subsidised childcare (66%), and school-based sports clubs (71%).
Without school, families face a sharp increase in food, fuel and childcare costs with no boost in household income. Over two-thirds report concern[3] about paying essential bills (72%); childcare costs (60%); or children’s activities (69%) this summer.
The research reveals low-income families could be forced into drastic action with at least half of parents likely[4] to:
- delay paying rent or mortgage payments (50%);
- use Buy Now Pay Later schemes (63%);
- extend their overdraft (52%);
- take out a loan (54%);
- or sell something essential or important to them (55%) to cover costs.
Of those borrowing additional funds, the most likely reported use was buying food (32%). With over a quarter citing utility bills (28%) and childcare costs (27%).
Almost all (98%) say the cost-of-living will negatively impact[5] their summer holiday plans as the summer cliff edge looms.
The charity warns such stark choices on essential costs leave low-income families at risk of summer isolation, with children missing out on fun activities and enrichment.
Of the parents surveyed who say the cost of living will negatively impact their summer holiday plans, over a quarter (27%) said they will avoid any plans which have an extra financial cost. Almost one in four have cancelled days out or trips (24%) or will avoid a holiday this year (24%).
The charity also highlights the impact on children’s opportunities for social interaction, with one in five (21%) parents understandably saying they expect to use devices such as iPads or TV to keep children entertained to keep costs down.
Catherine Joyce, National Director for England North at Action for Children, said:
“Our front-line services see the impossible choices families face across the UK every day, and while summer is a vital time for play and adventure the pressure of costs intensify for families. How can we expect a child to enjoy their holidays with families concerned about paying for their next meal, let alone enriching activities?
“This tough reality means support like our summer programme of Family Clubs are more vital than ever. They offer a local lifeline of access to enjoyable playtime, a hot meal, and chance to build some supportive networks for parents and children.
“Our message to the new Prime Minister is clear: tackling the cost-of-living crisis for children and families must be a priority.
“The Great British Summer savings scheme is welcome, but we must see further targeted support for low-income families already struggling with rising costs and affordability. Summer should be carefree time of exploring for children; it is these foundations which have a lifelong impact on children’s learning, development, confidence and friendships.”
Family Clubs - funded by Nationwide and delivered by Action for Children - run across England, Scotland, Wales and Northern Ireland. They offer families a chance to come together with fun enriching activities, a hot meal, learning opportunities and a support network.
This year marks two years of Action for Children's partnership with Nationwide Fairer Futures. The Fairer Futures strategy focuses on tackling some of the UK’s biggest social challenges, including child poverty. The UK’s largest building society invests at least 1% of its pre-tax profits to charitable activities each year. In 2025/26 this equated to £21.8 million. Together, Nationwide Fairer Futures and Action for Children have already helped provide practical and emotional support to more than 140,000 children, young people and parents experiencing poverty or financial hardship.
Nationwide’s Better Off Indicator helps identify unclaimed benefits for anyone – and has identified over £100m in first 12 months.
At a time many households, including many families, continue to struggle – Nationwide launched its Better Off Indicator in partnership with social policy experts, Policy in Practice to help make a difference.
The free tool, which is available over the telephone or online, can be used by anyone - not just customers. It helps people identify benefits to which they may be entitled. Since launching last June, it has helped more than 15,000 households identify over £100 million in annual unclaimed benefits. See Better Off Indicator.
Gemma Bird, Action for Children supporter and personal finance influencer, commented:
"Without the safety net of school, families are suddenly faced with six weeks of extra food costs, childcare and finding ways to keep the kids entertained. With household budgets already stretched, many parents are making impossible choices to cover the essentials, and some are getting into debt to put food on the table and cover bills. It's heartbreaking.
"There are ways to make the summer holidays more affordable. Check local community noticeboards and social media groups, as lots of free activities aren't widely advertised. Getting together with other parents in the playground for toy swaps is a great way to keep kids entertained with something new, while a trip to the library can make story time feel exciting without spending a penny.
"Most importantly, don't struggle in silence. Check what financial help you could be entitled to by using a free online tool, such as the Nationwide Better Off benefits indicator. So many families are missing out on support simply because they don't realise what help is out there."
CASE STUDY: Sarah, a single mum from South Wales – **Available for interview**
Sarah is a single mum of one who lives in South Wales with her eleven-year-old daughter Sabrina.
Sarah is unable to work due to the chronic pain condition, fibromyalgia. She relies on Universal Credit and other benefits and often uses food banks to be able to feed her daughter.
“Right now, the cost of petrol is a major issue… The rising cost of fuel is making daily life extremely difficult, and even basic travel feels unaffordable.
“There is no budget for any extras—no trips, no days out, and no activities. Even something simple like travelling somewhere is too expensive due to petrol costs.”
Talking about how tight finances are during the summer, she said:
“There is no other chance of extra income or any additional support coming in. Everything relies on what I currently have… I have to hope that nothing in the house goes wrong because if anything breaks this summer then that’s it. There is no money to fix it, there is no credit card to put it on, there are no savings, there are no emergency funds.
“This is why the support of Action for Children has been so important to us over the years. If something goes wrong we just have to hope that there is help available again like when they gave us a bed."
Sarah’s daughter was supported by Action for Children including receiving a bed and mattress through the Nationwide Family Fund, and a supermarket voucher.
During school term time, Sabrina receives subsidised school meals but during the holidays Sarah will need to provide additional meals and snacks she cannot realistically afford.”
Speaking about the added food costs of summer, she said:
“Food costs are already a struggle, and I will be trying to manage this on a wing and a prayer.
“I have used food banks before and may need to again, particularly for essentials like snacks to make sure there is enough food in the house.
“Healthy eating will be more difficult. School currently provides balanced meals including fruit and vegetables, and during the holidays this support is not there, so her diet may be less healthy.”
Talking about activities costs during the summer, she added:
“The focus right now is simply on getting through day-to-day life rather than doing anything enjoyable.
Even going somewhere like Barry Island, which is free, will likely be overcrowded, and getting there still requires petrol we cannot afford. And when you get there, there are ice creams and trinkets... saying no all the time to everything gets upsetting for you and your child especially when you see other kids going into shops… This is why parents are more and more going without things so the kids don’t have to".
“There will be very limited opportunities [during the summer]. We are unable to afford trips, theme parks, trampoline parks, or long drives, as even smaller outings now cost £30 or more. This means fewer fun experiences for Sabrina.”
“While I appreciate that Labour are talking of cutting VAT on days out, it often assumes you have the money to get there in the first place, which we simply do not.”
